Gold, silver and bitcoin tumble as debasement trade unwinds
CoinDesk 2026-06-24 13:48:04
Context: Gold, silver, and bitcoin have plummeted in value as the "debasement trade" unwinds, driven by growing fears of tighter monetary policy under new Federal Reserve Chair Kevin Warsh and renewed inflation fears. The sell-off has been sharp, with gold dropping 28% from its January 2025 peak of $5,600 per ounce and silver falling more than 50% from its record high near $120. This reversal marks a dramatic shift from the dominant macro narrative of 2025.
Key Facts
- Gold has dropped 28% from its January 2025 peak of $5,600 per ounce, now trading below $4,000 per ounce, while silver has fallen more than 50%, slipping beneath $59 per ounce.
- Markets are currently pricing in two 25 basis point rate hikes by March 2027, which would lift the federal funds rate to 4.00%-4.25% due to renewed inflation fears under new Federal Reserve Chair Kevin Warsh.
- Bitcoin has continued to fall during the broader correction, now sitting below $62,000, a 50% correction from its October all-time high and trading below its long-term 200-week moving average of approximately $62,800.
- Despite the decline, bitcoin has outperformed both precious metals since February, gaining roughly 30% against gold and more than 55% against silver.
- All three assets have lagged U.S. equities in 2026, where momentum remains concentrated in semiconductor and memory-related stocks.